Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CureVac NV (CVAC, Financial) secured a new licensing agreement valued at up to EUR 1.45 billion, including an upfront payment of EUR 400 million, boosting their financial position.
- The company has a strong cash position of EUR 551 million as of the end of September 2024, providing a financial runway into 2028.
- CureVac NV (CVAC) is advancing its oncology pipeline with promising preliminary data from a phase one study in glioblastoma, showing potential for mRNA technology in aggressive cancers.
- The company is strategically focusing on high-value opportunities in oncology and infectious diseases, with new programs targeting squamous lung cancer and urinary tract infections.
- CureVac NV (CVAC) is undergoing a corporate redesign, including a 30% workforce reduction, expected to decrease operational expenses by over 30% starting in 2025.
Negative Points
- The company is facing ongoing litigation, with a significant US court case scheduled for March 2025, which could impact future operations.
- CureVac NV (CVAC) terminated its collaboration with the Schepens Eye Research Institute in ocular diseases, indicating challenges in some R&D partnerships.
- The company incurred costs related to the 30% workforce reduction, although these were approximately 40% below the allocated budget.
- There is uncertainty regarding the translation of immunologic responses into clinical benefits in their glioblastoma program, requiring more data for robust conclusions.
- CureVac NV (CVAC) faces competition in the vaccine market, with ongoing development efforts needed to differentiate their mRNA technology from existing solutions.
Q & A Highlights
Q: Can you discuss your thoughts on business opportunities outside of mRNA and provide an update on litigation?
A: We remain focused on oncology and infectious diseases, collaborating with GSK in these areas. We are open to new opportunities within these fields to strengthen our portfolio. Regarding litigation, the US court case is scheduled for March 2025, and we are preparing for it. In Europe, the process is ongoing with case-by-case evaluations expected to continue into 2026.
Q: Could you share any plans for developing a combination vaccine for flu and COVID?
A: This question is best addressed by GSK, but we believe a combination vaccine would be convenient and promising. The phase one study has started, and we expect data next year to decide on progressing to phase two, especially following positive phase two data for influenza.
Q: Why was lung cancer selected as a new indication, and can you provide an update on European patent litigation?
A: Lung cancer was chosen based on scientific data and our antigen discovery work, which identified novel antigens suitable for this indication. In Europe, litigation is more complex and ongoing on a case-by-case basis, with further rulings expected in the second quarter of next year.
Q: Can you comment on why a prior protein-based program didn't move forward and how your approach differs?
A: Our approach targets a highly conserved antigen in bacteria, covering about 95% of the affected population. We use innovative antigen design to induce strong immune responses, showing superior immunogenicity compared to protein-based designs. This proprietary technology enhances both humoral and cellular immune responses.
Q: How should we think about the translation of T-cell responses to tumor response in the GBM program, and what are the most interesting indications for the off-the-shelf program?
A: Translating immunologic response to clinical benefit is challenging, and we need more data from our expansion cohort. Early data shows promising clinical signals, but further analysis is needed. For the off-the-shelf program, we are focusing on indications like squamous lung cancer, guided by strategic and scientific criteria.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
